Blog

  • Trump’s funds cut may force Missouri universities to slash USD 100M costs

    Trump’s funds cut may force Missouri universities to slash USD 100M costs

    Missouri universities and research organizations will need to cut about $100 million from administrative costs for research funded last year by the National Institutes of Health or replace the money from other sources if President Donald Trump’s attempt to reduce indirect costs is successful.

    There were 1,553 grants worth $901 million issued by the NIH to Missouri institutions during the most recent federal fiscal year. The recipients reported spending as much as 30% of their grant on indirect costs to support their research.

    The grants allow research into medical problems, such as pandemic preparedness or the control of infections acquired in hospitals. They also cover agriculture and veterinary research, like the Swine Resource Center at the University of Missouri, and public health problems such as how policies on E-cigarettes impact youth tobacco use.

    A federal judge on Monday evening issued a temporary restraining order blocking the cuts in response to a lawsuit joined by 22 states, not including Missouri. The order covered all federal funding cuts made since Trump took office Jan. 20.

    By far the biggest recipient of NIH grants was Washington University in St. Louis, which received 1,192 grants totaling $732 million, followed by the 162 grants worth almost $70 million to the University of Missouri’s Columbia campus.

    Both universities spend well above the 15% cap on indirect costs set as the goal for NIH research under the new policy.

    Other significant recipients of NIH grants in Missouri include St. Louis University, which received 63 worth $25.8 million; Children’s Mercy Hospital in Kansas City, which landed 26 grants worth $9.7 million; and the Stowers Institute for Medical Research, which received 19 grants worth $5.1 million in the most recent fiscal year.

    Washington University reported it will have about $189 million in indirect costs for its grants, or about 26% of the total. The University of Missouri reported its indirect costs will be about $21 million, or 30% of the amount awarded.

    In a message to the Washington University campus, Chancellor Andrew Martin said the campus administration is reviewing the new rule, which will “have a significant impact on institutions like WashU” and is working to get the new rule reversed.

    “We’re mobilized on multiple fronts,” Martin wrote. “Our leadership team is closely reviewing the policy, and our government relations team is engaging with congressional representatives and others to ensure that they understand the consequences of these cuts and are encouraged to act to address this threat to research and its many benefits to society.”

    To get indirect costs below 15% for the grants awarded in fiscal 2024, Washington University would have to cut about $80 million in administrative expenses or find it from other sources.

    At the University of Missouri, indirect costs exceed the new threshold by about $10 million for the Columbia campus. There are a handful of grants for the other three campuses — University of Missouri-Kansas City, University of Missouri-St. Louis and Missouri University of Science and Technology in Rolla — that would add about $1.7 million to that amount.

    The university system administration was unable to say Monday whether it would cut costs — likely resulting in job losses — or cover the shortfall from other resources.

    NIH funding supports research in agriculture, biomedical sciences and advanced technologies at the university, according to a statement issued by University of Missouri spokesman Christopher Ave.

    The change in indirect funding “would mean significant annual reductions in funding for our vital NIH-sponsored research that saves lives, creates jobs, enhances national security and improves quality of life for people in every part of our state and across the nation,” Ave said. Like Washington University, the UM System is working to get the decision reversed, the statement said.

    “Our leadership is communicating with key stakeholders in government, the private sector, other universities and other communities,” Ave said.. “Leaders of our campuses have directed faculty and staff working on NIH and other federal grants to continue their important research and to keep submitting NIH proposals as well as other federal agency grants as we further assess the situation.” Missouri Independent

  • Trump’s decision to slash research funds sparks immense backlash

    Trump’s decision to slash research funds sparks immense backlash

    The Trump administration’s decision to slash overhead costs linked to federally funded research has sparked an immense backlash. But some doctors are praising the move, suggesting it will help “optimize” how taxpayer dollars are used when it comes to scientific research.

    A new rule from the Trump administration that went into effect Monday, capped facilities and administrative costs, also known as “indirect costs,” at 15% for federally funded research grants provided by the National Institutes of Health (NIH). When a grant is awarded to a scientist by the NIH, an additional percentage, on top of the allocated research funding, goes to the facility housing their work to cover these “indirect costs.”

    According to an announcement about the new funding cap from the Trump administration, that percentage has historically been around 27% to 28% for each grant. But in some cases, negotiated rates can be as high as 70 to 90%, according to doctors who spoke with Fox News Digital.

    “If that money is cut to 15%, what that means is there’s actually going to be more grants given out to do science. You get more money back to the NIH to give out more science,” said Dr Vinay Prasad, a hematologist-oncologist and professor in the Department of Epidemiology and Biostatistics at the University of California, San Francisco.

    “It’s about time,” said Dr Erika Schwartz, the founder of Evolved Science, which is a concierge medical practice in New York City with more than 1,500 active patients.

    “While infrastructure support is necessary, there’s room for more efficient cost management. A reformed funding model could redirect more resources to direct research activities while maintaining essential support services. This could potentially increase the number of funded research projects and accelerate medical breakthroughs, ultimately benefiting patients more directly.”

    Prasad posited that universities and research institutions have negotiated “sweetheart deals” that allow them to rake in funds that sometimes aren’t even necessary to the research at hand. To demonstrate his point, he explained the numbers for a research institution that has negotiated a 57% rate for indirect costs:

    “Let’s say I get $100,000 [for a research project] and I need a laboratory… I get $100,000, and then they still get the $57,000 to the university that goes to the administrators, and presumably the fact that I have a lab bench, and the lights, etc. But now let’s say I do the same $100,000 project, but my project is we’re going to analyze genomic sequences from an online repository. So, I just have a laptop… but they still get the $57,000 even though there’s literally no space being given to this person. There’s no bench, there’s no desk, there’s nothing.”

    Prasad added that another “fundamental problem” with these negotiated rates is that the money is not formally budgeted, so “the American people don’t know where that money is going.”

    “A famous researcher once said to me, an NIH dollar is more valuable than any other dollar because they can use it for whatever purpose they want. Although, nominally, they’re supposed to use it to keep the lights on and, you know, make the buildings run, but that’s not always the case,” he said.

    David Whelan, a former healthcare writer for Forbes who has spent time working in hospitals and now works in the healthcare consulting space, echoed this concern in a post on X that claimed universities have used indirect research grant payments “to pocket money.”

    “Indirects are just ways for wealthy academic hospitals to pocket money that their investigators won and then create slush for those who are incapable of getting funded on their own,” Whelan wrote. “It’s a huge grift and great place for cuts.”

    The Trump administration’s cap on indirect funding associated with NIH research grants was immediately challenged in court with lawsuits from 22 Democratic state attorneys general and a cohort of universities, which argued the move will “devastate critical public health research at universities and research institutions in the United States.”

    “Once again, President Trump and Elon Musk are acting in direct violation of the law. In this case, they are causing irreparable damage to ongoing research to develop cures and treatments for cancer, Alzheimer’s disease and related dementias, ALS, Diabetes, Mental Health disorders, opioid abuse, genetic diseases, rare diseases, and other diseases and conditions affecting American families,” said Rep. Rosa DeLauro, D-Conn., ranking member on the House Appropriations Committee. “The Trump Administration is attempting to steal critical funds promised to scientific research institutions funded by the NIH, despite an explicit legal prohibition against this action.”

    In response to the lawsuit from Democratic state attorneys general, a federal judge imposed a temporary restraining order prohibiting NIH agencies from taking any steps to implement, apply or enforce the new rule.

    The judge’s order also required Trump administration agencies that are impacted by the new rule to file reports within 24 hours to confirm the steps they are taking to comply with the ruling. Meanwhile, an in-person hearing date on the matter has been scheduled for Feb. 21. Fox News

  • Apollo Diagnostics launches new center in Hyderabad

    Apollo Diagnostics launches new center in Hyderabad

    Apollo Diagnostics part of Apollo Group announced the launch of its newest diagnostic center located in Kukatpally, KPHB Road No 4. This marks the 120th patient care Centre in Hyderabad, underscoring Apollo’s commitment of expanding access to quality healthcare across the region.

    The new facility, is strategically situated to serve the growing population from Kukatpally, Madhapur, Hitech city, JNTU and Miyapur surrounding areas. With state-of-the-art technology and a dedicated team of healthcare professionals, Apollo Diagnostics aims to provide timely and accurate diagnostic services that are essential for effective treatment.

    To celebrate the opening, Apollo Diagnostics is offering exclusive prices for key health tests, including FBS/RBS/Cholesterol at just ₹10, HbA1C for ₹199, Vitamin D at ₹699, and Thyroid Profile also at ₹199. These offers reflect Apollo’s commitment to making essential diagnostics tests more accessible and affordable for the community. Business India Focus

  • FDA issues draft guidance to address cybersecurity risks of AI-enabled devices

    FDA issues draft guidance to address cybersecurity risks of AI-enabled devices

    On January 7, 2025, the US Food and Drug Administration (“FDA”) issued draft guidance, titled “Artificial Intelligence-Enabled Device Software Functions: Lifecycle Management and Marketing Submission Recommendations” (the “Guidance”), that addresses management of cybersecurity risks affecting AI-enabled devices.

    The Guidance supplements the FDA’s more general 2023 guidance, “Cybersecurity in Medical Devices: Quality System Considerations and Content of Premarket Submissions,” which contains recommendations for medical device makers with respect to designing and maintaining cybersecurity, and providing cyber details to the FDA in premarket submissions.

    According to the Guidance, cyber threats that can specifically affect AI-enabled devices include: data poisoning (i.e., deliberate injections of inauthentic or maliciously modified data); model inversion and theft to infer details from or replicate models; model evasion (e.g., crafting input samples to deceive models); data leakage; overfitting; model bias through manipulation of training data or other exploits; and manipulation that could lead to “model performance drift” by changing the underlying data distribution, which degrades model performance.

    The Guidance also advises AI-driven device makers to provide the FDA with premarket submission details and develop mitigation and management plans to address cybersecurity risks.

    In light of the recent change in the US Presidency, changes and delays to the Guidance are anticipated. The Guidance is open for public comment until April 7, 2025. The National Law Review

  • Gujarat makes it mandatory for hospitals, diagnostic labs to register under CEA

    Gujarat makes it mandatory for hospitals, diagnostic labs to register under CEA

    The Gujarat government has made it mandatory for all healthcare institutions, including hospitals, diagnostic labs, and clinics, to register under the Clinical Establishment Act 2024.

    The state Health Department has launched an extensive campaign to ensure compliance, with a deadline set for March 12, 2025. Institutions failing to register within the given timeframe could face penalties of up to Rs 5 lakh. As part of this regulation, all medical practitioners and healthcare professionals running clinics must also register.

    Am officials said that the directive applies to allopathy, ayurveda, homoeopathy, and Unani medical institutions providing healthcare services.

    As per the official data, as of February 11, 2025, a total of 16,698 healthcare facilities across Gujarat have completed either permanent or provisional registration.

    Of these, 14,647 institutions have completed online registration, including 1,882 government and 5,268 private healthcare centres. The registered facilities include 12,028 allopathy hospitals, 1,622 ayurveda centres, and over 3,000 homoeopathy hospitals and clinics.

    Additionally, 566 clinical laboratories, 28 dialysis centres, and various physiotherapy and dental clinics have been registered under the act.

    The government aims to streamline healthcare operations, enhance service quality, and ensure accountability within the sector. With the approaching deadline, the Health Department urges all unregistered medical facilities to comply with the new regulation to avoid penalties and ensure uninterrupted operations.

    The state now boasts 319 Community Health Centers (CHCs), 1,463 Primary Health Centers (PHCs), and 6,575 sub-centers, reflecting a 41 per cent increase in PHCs and a 37 per cent rise in CHCs since 2001-02.

    Additionally, the number of medical colleges has grown from nine in 2001 to over 30 in 2023. The Gujarat Hospital Management Information System (GHMIS) reports that 35 hospitals are currently operational under its purview, with 17 being teaching hospitals.

    Collectively, these institutions have recorded over 91 million outpatient registrations and approximately 9 million inpatient registrations. Despite these advancements, challenges persist. Healthcare services for the tribal populations in Gujarat remain inadequate, with reports of systematic exploitation by both legitimate and illegitimate practitioners.

    Furthermore, disparities in maternal health services are evident across districts. For instance, the percentage of women receiving four or more antenatal care visits ranges from 56 per cent in Banaskantha to 95 per cent in Navsari. The Hans India

  • e& PPF, Telekom Srbija buy United Group assets in €1.5B deal

    e& PPF, Telekom Srbija buy United Group assets in €1.5B deal

    Balkan telecoms and media company United Group has agreed to sell its broadband provider Serbia Broadband to e& PPF Telecoms Group and other assets to Telekom Srbija in a deal with an enterprise value of 1.5 billion euros, United said on Wednesday.

    e& PPF Telecom Group, a joint venture of UAE’s e& and Czech-based PPF, said it was buying Serbia Broadband (SBB) for 825 million euros ($854.95 million) cash-free and debt-free as the main part of the transaction.

    United Group, which operates across South East Europe, said it was also selling its NetTV Plus business and its sports broadcasting rights for the Western Balkans to Telekom Srbija. It is keeping SBB’s media assets including the N1 and Nova S television channels, which will continue to be available on SBB’s network.

    “Today’s divestments are in line with our strategy to sharpen our focus on the markets where we can provide the full spectrum of mobile and fixed telecommunication services to our customers, which will enable us to realize the greatest potential for growth and value creation,” United Group Chief Executive Victoriya Boklag said in a statement.

    e& PPF Telecom Group said the deal adds 700,000 cable television and broadband internet customers to its base.

    The acquisition is an outcome of e& and PPF’s interest in United Group assets announced by PPF chief Jiri Smejc in a Reuters interview in November.

    “The acquisition aligns with e&’s strategic ambition to scale up e& international in Central Eastern Europe, diversify revenue sources with greater exposure to stable currencies, and

    accelerate growth in e& PPF Telecom,” e& PPF Telecom said in a statement”

    e& PPF Telecom said the deal would be entirely financed by external debt.

    United said the deal was subject to regulatory approvals and was expected to be completed during the first half of 2025. Reuters

  • EU announces €50 billion fund to boost AI ambitions

    EU announces €50 billion fund to boost AI ambitions

    The European Union will provide 50 billion euros ($51.6 billion) of EU funds to bolster the bloc’s artificial intelligence ambitions, European Commission President Ursula von der Leyen said, as countries race to lead in the technology.

    The EU funds will top up the European AI Champions initiative, spearheaded by venture capitalist General Catalyst, which has drawn pledges of 150 billion euros of private investment so far, from the likes of Airbus, ASML, Siemens, Infineon, Philips, Mistral and Volkswagen.

    “Thereby we aim to mobilise a total of 200 billion euros for AI investments in Europe,” von der Leyen told the Paris AI Summit.

    The EU funding is significantly less, however, than the up to $500 billion of U.S. private sector investment announced by President Donald Trump last month for AI infrastructure.

    Von der Leyen said EU investments will focus on industrial and mission-critical technologies.

    The EU executive said 20 billion of the 50 billion euros EU funding will finance the construction of four AI gigafactories across the 27-country bloc, adding to seven such factories announced last December. US News

  • Telcos target underserved regions as Starlink expands in Africa

    Telcos target underserved regions as Starlink expands in Africa

    As Starlink intensifies competitive pressures and African governments remain uncertain about intervening to protect telco incumbents, African telecom companies are increasingly focusing on underserved regions. In response, they are launching strategic initiatives to tackle the rising challenge of low Earth orbit (LEO) satellite connectivity to maintain their market position and tap into new growth opportunities, according to GlobalData, a leading data and analytics company.

    Recent tie-ups – including the Orange–Vodacom deal in Uganda for network deployment in rural areas; Safaricom partnering with local satellite operator ESD Kenya; ZainTech partnership with Arabsat covering North Africa; and Vodacom and MTN’s own desire to boost connectivity across their footprint via LEOs – point to this trend.

    Ismail Patel, Senior Analyst, Enterprise Technology and Services at GlobalData, says: “The rapid shift in focus by Africa’s telcos can largely be attributed to a confluence of factors, with Starlink being a key driver. These telcos are increasingly seeing unserved and underserved regions of the continent as opportunities rather than investment dead ends.”

    GlobalData analysis uncovered the existence of not only regulatory divergence in how to deal with Starlink, but also variation in Starlink’s attitudes to compliance with licensing or lack thereof in the wider MEA region. In Africa, some governments require it to be licensed, thus adopting a protectionist approach. Some are more hesitant to do so, ostensibly due to the potential of Starlink connectivity stimulating the economy in rural and underserved regions.

    Although its subscriber market share is small, Starlink is eating into the untapped revenue opportunities, with the potential of building up a loyal customer base. This represents a concern for the incumbents as Starlink builds up a base of higher-than-average revenue generating customers such as small office/home office (SOHOs) and small and medium-sized businesses (SMBs), on top of connecting underserved populations that include thousands of micro-businesses.

    With Starlink promising to launch in 14 new markets across Africa in 2025, pressures on the traditional telco incumbents will only become starker and sharper, leading to more collaboration among themselves as well as with alternative LEOs.

    Patel concludes: “Starlink has undeniably changed the competitive field for connectivity, resulting in telcos scrambling for a piece of the rural greenfield opportunity that was neglected for a considerable time. The global LEO is competitive on pricing and offer a quality connection that has not been the norm for many in Africa. But not all is lost for the continent’s telco groups, as they can typically offer the type of tech-based services to SMBs that a global LEO cannot, such as – inter alia – improved supply chain management, e-health, adverse weather mitigation, mobile payments, and natural resource management.” GlobalData

  • Vi shares drop over 8%, hit Rs 8.10 intraday low

    Vi shares drop over 8%, hit Rs 8.10 intraday low

    Vodafone Idea share price:Telecom operator Vodafone Idea shares plunged as much as 8.16 per cent to hit an intraday low of Rs 8.10 per share on Wednesday, February 12, 2025.

    The fall in Vodafone Idea share price came after the company posted a mixed set of results in the December quarter of financial year 2025 (Q3FY25).

    Vodafone Idea’s consolidated net losses narrowed marginally to Rs 6,609.3 crore in Q3FY25, from a loss of Rs 6,985.9 crore in Q3FY24.

    Revenue from operations, meanwhile, rose 4.2 per cent year-on-year (YoY) to 11,117.3 crore in Q3FY25, from Rs 10,673.1 crore in Q3FY24.

    At the operating front, earnings before interest, tax, depreciation, amortisation (Ebitda) rose 8.3 per cent YoY to Rs 4,712.4 crore in Q3FY25, from Rs 4,350.4 crore in Q3FY24.

    Subsequently, Ebitda margin improved 160 basis points (bps) to 42.4 per cent in Q33FY25, from 40.8 per cent in Q3FY24.

    The Capex spend for Q3FY25 was at Rs. 3,210 crore, taking the capex for the nine months to Rs 5,330 crore. The network rollout will accelerate further in Q4FY25 with the full year expected capex of ~Rs 10,000 crore.

    Meanwhile, the debt from banks reduced by Rs 5,290 crore during the last one year and stood at Rs 2,330 crore (was at Rs 7,620 crore in Q3FY24).

    “During the quarter, we expanded our footprint to more than 4,000 unique broadband towers, the largest addition in a quarter by the Company since merger,” Vodafone Idea said, in a statement.

    However, Vodafone Idea’s total data subscribers took a hit as it dropped to 13.42 crore in Q3FY25, from 13.74 crore in Q3FY24. It also dropped sequentially from 13.49 crore in Q2FY25

    The telecom company’s average revenue per user (ARPU) soared to Rs 163 in Q3FY25, as against Rs 145 in Q3FY24. The ARPU stood at Rs 156 in Q2FY25. Business Standard

  • $42 Billion Broadband Boondoggle brought internet to zero homes

    $42 Billion Broadband Boondoggle brought internet to zero homes

    The Broadband Equity, Access, and Deployment Program (BEAD) allocated $42 billion to extend broadband access to all homes nationwide. Nearly three years after passage, 16 states still lacked funding approval. In its first three years, the program connected precisely zero homes to the internet.

    The expressed objective of BEAD is to bridge the so-called digital divide — the lower levels of access and affordability for some rural residents, minority groups, and lower-income earners. Yet, the private sector is doing quite well at bridging this so-called divide. While the federal government dithered on allotting the $42 billion of BEAD funding, the percentage of Americans using the internet rose from 80 percent in 2021 to 83 percent in 2023 — an additional 13 million users. High-income household use has remained virtually unchanged for a decade — at 87 percent — while usage in low-income households earning less than $25,000 steadily rose to 75 percent by 2023. Even in rural areas, 72 percent already have fixed broadband coverage.

    Even the remaining gap overstates the extent of the problems with access and affordability. Less than 10 percent of the overall population lacks internet service. Of the 24 million households with no internet, more than half (58 percent) either have no interest in being online or no need to be online. Lack of availability accounts for just 4 percent of those without home internet. In other words, fewer than 1 million households (fewer than 1 in 100) nationwide are offline solely due to lack of availability.

    The per-household cost of the federal “solution” to this diminishing problem is steep. The $42 billion price-tag is sufficient to provide 12 years’ worth of Starlink service — $44,000 — for each impacted household. Even if we presume all the 24 million households currently without access will benefit from increased access and affordability, this comes to $1750 per household.

    Meanwhile, the cost per taxpayer of BEAD is simply added to our massive federal credit card balance, a marginal negative impact so distant it is barely discernible. But that’s the ugly truth of dispersed costs and concentrated benefits. A handful of broadband infrastructure companies stand to benefit immensely from these widely dispersed costs. Taxpayers foot 75 percent of the cost of capital investments from which these favored companies will generate revenue for decades to come.

    The private sector already has developed an alternative to high-capital expenditures for building our expensive infrastructure serving only sparse numbers of people in rural areas: Starlink.

    Starlink covers the entirety of the lower 48 states at a cost of just $120 per month for unlimited residential use. Typical download speed easily exceeds the FCC’s 25 Mbps threshold for “unserved” and often exceeds the FCC’s 100 Mbps threshold for “underserved.”

    Ironically, Biden claims this program is “not unlike what Roosevelt did with electricity.” At the founding of the Rural Electrification Administration in 1935, only one in ten farms had access to electricity. Incidentally, the number of US farms peaked in that year and agriculture comprised 21 percent of our workforce, lack of access to electricity posed a real impediment to growth. Contrast that with today when most families even in remote parts of the nation already utilize the internet — and fewer than 1 million are deprived due to lack of availability. Furthermore, in 1935, no practical substitute to hard, physical infrastructure — cables, poles, transformers, and power plants — existed, where today internet access via satellite link and portable equipment can substitute for physical broadband cables. Lastly, the funds provided by FDR’s administration were loans rather than pure giveaways of taxpayer money to favored companies. The differences in need, benefit, and mechanism between this wasteful broadband program and the rural electrification program are stark.

    It’s also no surprise deployment of these $42 billion in federal funds has been slow or even nonexistent. BEAD funding comes with various attached requirements, including mitigating climate change, hiring those with criminal records, conforming to a prevailing wage scheme, and hiring and training local residents. In addition, the rules specify that recipients of the subsidies provide services at “reasonable prices” for “middle class families.” Failing to provide an actual price cap skirted the legislation’s ban on outright regulation of broadband rates. But this workaround acted as an even worse form of price control — one in which bureaucrats decide retroactively whether a price is “reasonable.”

    Reliance on government funding will discourage private sector investment in broadband infrastructure, as companies might wait for government subsidies rather than investing their own capital. This could slow down overall broadband expansion and innovation in the long term, affecting consumer access and service quality. Rather than focus on investing in infrastructure where returns on capital will prove most profitable, companies instead must predict the geographies and market segments most likely to receive government subsidies. Reliance on federal or state broadband coverage maps can misallocate capital to areas where investments are less efficiently employed. A company spending its own capital on infrastructure would be a costly mistake if taxpayers will provide those resources instead (or provide them to a competitor). The promise of BEAD funds will likely deter private investment in areas where this funding is anticipated.

    The marketplace shows an uncanny ability to improve affordability. For instance, across parts of South Florida, Breezeline was the only residential broadband provider.

    Household costs topped $150 per month. This changed rapidly in 2024 as Verizon expanded home internet service to many neighborhoods, offering similar access at less than half their competitor’s price. Breezeline’s onerous pricing provided an incentive for Verizon to invest heavily in an alternative. Profit is a motivator for private investment, benefiting both shareholders and the public.

    Why not simply allow the market to work? Rural residents with no access to broadband can use Starlink. Over time, private companies may decide that broadband infrastructure development in these areas is worth the capital investment. They are in a far better position to make this determination than bureaucrats doling out borrowed taxpayer resources. The track record of BEAD’s inefficiencies and delays caused by lack of intergovernmental coordination and funding compliance requirements should spell its end.

    It’s time to repeal this especially wasteful component of the 2021 infrastructure law. The Daily Economy